Lukoil Lube Sales Rose in 2018

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Lukoil Lube Sales Rose in 2018

Lukoil sold 875,000 metric tons of finished lubricants in 2018, up from 863,000 tons in 2017, according to the Russian companys latest performance report. It attributed the increase to growing domestic demand for petrochemical products.

Lukoil said it achieved satisfactory results in developing non-fuel and lubricant sales at its gasoline filling stations and ensured focused growth by launching new lubricants.

Courtesy of Boris Kamchev

Lukoil sold 875,000 tons of finished lubricants in 2018, up from 863,000 tons in the year before, driven by the growing demand for petrochemical products and increased competition in the retail sector, according to the company’s latest performance report.

Sales of our Lukoil-branded products reached 594,000 tons in 2018, or [a] 2 percent increase from the year before, thanks to the joint product development launched with leading global automotive and industrial equipment manufacturers, the company said.

Lukoil is Russias largest lube marketer and produces over 700 types of lubricants. Last year it was responsible for 45 percent – around 1.1 million tons – of the countrys combined base oils and lubricants output. Its combined base oils and lubricants exports decreased to 600,000 tons in 2018, compared to the 623,000 tons in 2017. This reflects the companys aggressive sale localization. In 2018 we developed over 60 new lubricant products, including motor, industrial and transmission oils, as well as metalworking fluids and process oils, the company stated.

Lukoil claimed that it already had some type of working arrangement with virtually all foreign-owned automobile factories in Russia but said it started joint product development initiatives with automobile and industrial equipment makers in 2018 that resulted in development of 20 lube solutions. The companys Perm blending plant underwent a successful audit for compliance with the German Association of the Automotive Industry 6.3 standard, becoming a priority supplier for German car manufacturers issuing orders related to new car models.

The company also founded its own online store and opened a lubricants and bitumen loading facility in Volgograd, Russia.

Lukoils priorities for 2019 include launch of its 100,000 t/y lubricant blending plant in Almaty, Kazakhstan. The plant, scheduled to go online by the end of this year, will supply the Central Asian and Chinese markets.

Lukoils main production takes place at its refineries in Perm, where it produces API Group I, and Volgograd, where it produces Group I and Group III base oils and finished lubricants. Combined production at those sites reached 961,000 tons in 2018.

Additionally it operates five large stand-alone blending plants in Russia, Austria, Finland, Romania and Turkey. In 2018 these five plants produced 131,000 tons of finished lubricants total.

The company markets products in more than 100 countries through subsidiaries in Europe, the Middle East, Central Asia, Africa and China. Last year it started to sell products in the West and North African markets.

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Base Stocks    Europe    Finished Lubricants    Region    Russia